Recent decisions on Part 36 offers and the penalties for failing to accept reasonable settlement proposals highlight the wide discretion available to the courts when determining who should be liable for costs.

Section 36.3(1) of the Civil Procedure Rules (CPR) states that “subject to rules 36.5(5) and 36.23, an offer by a defendant to settle a money claim will not have the consequences set out in this part unless it is made by way of a Part 36 payment”.